Customer Relationship Management Case Study

BE 200

Q1-

Part A) Describe what is meant by customer relationship management?

Customer relationship management (CRM) refer to the practice, strategies and technologies the companies designed to reduce cost and increase profitability. The main goal is to improve the business relationship with customers by providing services or products that the customers want, by offering better and reliable customer service and gain customer loyalty.

Part B) what is the different relationship levels companies can build with customers?

Companies have various opportunities to attract the customers and gain more loyalty and Communication is on the top list. Communicate with the customer and see what the customer needs are and see what the customer has to say

They think and act on the basis of contingency heuristics. (2008), Creating and managing superior customer value, in Arch G. Woodside, Francesca Golfetto, Michael Gibbert (ed.) Creating and managing superior customer value (Advances in Business Marketing and Purchasing, Volume 14) Emerald Group Publishing Limited, pp.iii

So the company makes the customer believe that the product the customer is buying is of good quality with affordable price and this product is compatible with other brands and it worth buying this company products

Part C) In respect to customer relationship management concept and referring to the case above explain what did ALDI focus on in order to retain and gain its customers loyalty? ALDI focuses to encourage its regular customers to buy their products more often and their main focus was to ensure to their customers that ALDI brands are of equal quality to well-known brands with affordable price. To do this ALDI ran blind taste test and confirmed that the majority of the customers liked other brands also liked ALDI’s

Product differentiation is a marketing strategy businesses uses to gain an edge over their competitors. ALDI brand try to make their product unique in some way so that it stands out from the pack, by offering higher quality with lower cost. ALDI use competitive pricing which is one of the most important pricing strategy .ALDI set the price of a product base on what the competitors has charged. The main focus of ALDI is to lower the price of the product compared to other competitor’s product by maintaining the higher quality of the product. ALDI also start campaign to promote ALDI’s products to improve band recognition, advertising on TV, distribute printed flyers and take feedback from customers regarding product quality.

Part C) ALDI’s immediate challenge is to increase its market share from 2.3% to 2.5%. Referring to the case, explain how this little increase can be challenge and make a difference.

The main focus of ALDI is to show the customers that ALDI brand is equally compatible with any other brand and gain customer loyalty. At first ALDI realized that 80% of the customers shopped at other markets. ALDI’s “like brands “marketing campaign worked up ALDI’s market shared increased from 2.3% to 2.5%. In the retail grocery market even 0.1% counts and this little change give ALDI a worth extra £ 65 million